Mallinckrodt Pharmaceuticals — Ethics Grade F

Mallinckrodt Pharmaceuticals receives an overall ethics grade of F (8/100) on CancelCo's corporate accountability database. Sector: Pharmaceuticals. Market cap: Small Cap.

Category scores

• labor: 45
• privacy: 80
• consumer: 5
• environment: 50
• humanRights: 40

Documented incidents (3)

• Opioid Manufacturing Liability (high, 2020) — Mallinckrodt was one of the largest manufacturers of generic opioids in the U.S. and filed for bankruptcy as part of a $1.7 billion settlement to resolve thousands of lawsuits over its role in the opioid epidemic.
• Medicaid Rebate Fraud (high, 2022) — The company agreed to pay $260 million to settle allegations that it underpaid Medicaid rebates for its high-priced drug Acthar Gel. It was accused of misclassifying the drug to avoid paying higher inflation-linked rebates.
• FTC Monopoly Charges (high, 2017) — Mallinckrodt paid $100 million to settle FTC charges that it used its monopoly power to price-gouge Acthar Gel. The drug's price famously rose from $40 per vial to over $34,000.

Documented good deeds

• Drug Deactivation Bags — Distributed millions of drug deactivation pouches to help patients safely dispose of unused opioid medications.

Ethical alternatives

• Gilead Sciences — Better drug access initiatives in developing nations and lower litigation profile regarding marketing ethics.